Category Archives for Airlines.
Adapting to the new world of no change fees, and getting things done online or in an airline app, American Airlines has made an important change to roundtrip tickets. It is now possible to cancel a roundtrip ticket online, even after you’ve started flying the itinerary, and get a credit to use later.
Customers won’t choose an airline that doesn’t get them where they’re going. But those are table stakes. Delta and United have pursued a premium strategy. American isn’t. But with American’s high costs, they need to earn a revenue premium for their product. That means customers need to spend more – on premium products, and choosing them over competitors.
The airline’s first quarter losses, and continued financial underperformance compared to Delta and United, show that improved operations aren’t enough. They’re just a start. Airline management, though, doesn’t seem to understand this.
Following Thursday’s American Airlines earnings call, senior management held a company all-hands “State Of The Airline” address. Over 4,000 employees tuned in live to the presentation and question and answer session, and a recording was placed online.
After talking through the news around his own compensation, CEO Robert Isom laid out where things stand with the company’s offer to flight attendants. This proved to be setting up the most dramatic moment of the event.
After American’s earnings call on Thursday, in prepared remarkets to the airline’s employees as a ‘State of the Airline’ event (a recording of which was reviewed by View From The Wing), Isom brought up his pay package and fumbled through an explanation. And as they say, when you’re explaining you’re losing. He came across as defensive and unsure of himself.
An American Airlines passenger flying from Charlotte to Munich purchased a business class ticket that they say cost them $4,600. Once they boarded they discovered that their seat did not move. It did not recline. It did not turn into a bed. It was just a seat – not the thing they had purchased.
One of the more shocking things – beyond dirty seats – has been missing seat backs in first class, with seats taken out of service. The response from the airline (and some readers) has been that it’s better to fly planes in this condition than delay flights to address the problem. But I’ve always wondered, what are they doing when the planes aren’t flying to maintain the interiors so that this doesn’t happen so frequently?
Delta SkyMiles rarely have much value for international business class travel. They charge 4-6 times more than their partners do for the same flights. And flights to Asia are usually even more expensive than to Europe.
Right now, though, there is amazing business class availability on their Seattle – Taipei flight. You can get 9 or more passengers in business on many flights. And pricing starts at just 146,200 miles roundtrip.
Yesterday American Airlines shared the news with customers who would become ConciergeKey members for the next year. AAdvantage members saw the status update in their account – as happens each year, before receiving an email and (for new members at least) receiving a phone call.
Concierge Key is the status that American Airlines gives to its top spending customers and top corporate travel influencers. It became legendary when George Clooney was portrayed as a Concierge Key member on a quest to earn 10 million miles in Up In The Air.
American Airlines is making changes to its international schedule, and they’re telling employees that it is because they’re having to plan for fewer widebody planes. Boeing delivery delays on the 787-9 aircraft that American has ordered mean they’re not going to be able to support the full schedule they’ve been selling.
As part of these changes, American is also making further adjustments to its network. This includes increasing service on some routes as well – so these changes aren’t entirely Boeing’s fault. Those service adjustments are being bundled in with bigger changes.
Delta Air Lines flight 520 from New York JFK to Los Angeles had a piece of the aircraft fall off during climb out this morning, with emergency equipment meeting the flight on arrival. Delta substituted another Boeing 767, and passengers were sent on their way – expected to land in Los Angeles three and a half hours late.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
